May have to absorb some of last quarter's severe cost hike: JSW Steel Jt MD

In a Q&A, Seshagiri Rao, who is also group CFO, says the firm could introduce a surcharge to pass on the spike, but may still absorb $90-100 cost per tonne of coking coal in Q3

JSW Steel recorded its highest ever consolidated quarterly operating EBITDA in Q2FY22 on 10 per cent higher sales volumes. Quarter-on-quarter (QoQ), the EBITDA margin, however, was under pressure due to elevated raw material prices and other input costs. In an interview, JSW Steel joint managing director and group chief financial officer, Seshagiri Rao, tells Ishita Ayan Dutt that the company is contemplating introducing a surcharge to pass on the increase in cost. Edited excerpts:

The US has seen some moderation and China is slowing down. So, what is the outlook on steel demand?

We have to look at steel demand